Yumist shuts operations in Bengaluru

Yumist, the Gurgaon-based food delivery startup has shut down operations in Bengaluru within 10 months of launch in the city. However, the company said, it is expanding the operations in the Delhi-NCR region.

However, the company said, it is expanding the operations in the Delhi-NCR region

The startup has launched a 12000 sq ft, mega kitchen for NCR. The move will allow Yumist to significantly upgrade the customer experience. Besides lunch and dinner, the startup will also expand its offering to all-day options, breakfast and snacks.

In a blog posting the company said, “We are halting our operations in Bangalore for the time being. We have been operating out of a rental kitchen in Bangalore since our launch there in August 2015. Not owning the kitchens limit our capability to innovate on the menu and the supply chain equating to a sub-par experience, not something that we want to provide our customers at Yumist.” It further added that the company has opened a 12,000-sqft mega kitchen in NCR to cater to the growing demand in the region.

The startup claims to have witnessed a doubled number of orders and revenue in the past three weeks.

Brand History

Founded by former Zomato official, Alok Jain, along with restaurateur Abhimanyu Maheshwari in November 2014, Yumist, serves home-style meals prepared in their own kitchens, with a promise to deliver food in less than 30 minutes.

Funding

In December 2015, Yumist raised $2 Mn (about INR 12 Cr.) in a fresh round of funding led by Ronnie Screwvala‘s fund Unilazer Ventures and from existing investor Orios Venture Partners. Steven Lurie, a valley-based investor also participated in in this round of funding.

The foodtech debacle

Funding slowdown has taken a toll many of the food tech companies in the last two quarters in particular. While startups like Dazo and Spoonjoy, Eatlo and Ola (Ola cafe) shut operations completely, bigger ones like Zomato had scaled down its operations in certain cities earlier this year. In the hyperlocal space, PepperTap, Flipkart’s Nearby, Ola Store and Paytm Zip have shut operations.